Hydropower Retrofitting Feasibility study for a comparative Engineering and Economic Analysis: A case Study of Tendaho Dam
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Date
2026-05
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Addis Ababa University
Abstract
This study assesses the technical and economic feasibility of retrofitting the Tendaho
Dam in Ethiopia for hydropower generation while preserving its primary irrigation
function. Three retrofit strategies are evaluated: the Dedicated Waterway Strategy
(Option I), the Bifurcation Strategy (Option II), and the Channel Utilization Strategy
(Option III). A sequential, quantitative, engineering-based methodology is applied,
integrating hydrological analysis, engineering assessment, hydraulic modelling, and
economic evaluation. Long-term hydrological data, including river discharge,
reservoir levels, and irrigation releases, are analysed to determine dependable flows
and available head. Structural and operational characteristics of the dam are assessed
using original design documents and verified through field observations to identify
physical constraints and ensure irrigation compliance. Technically feasible retrofit
options are modelled using established hydropower equations to estimate installed
capacity, power output, and annual energy generation. Economic and financial
performance is evaluated using the RETScreen platform, employing indicators such as
Net Present Value (NPV), Levelized Cost of Energy (LCOE), and payback period. The
results demonstrate that retrofitting the Tendaho Dam is both technically and
economically feasible. Options I and II achieve installed capacities exceeding 16 MW
and annual energy generation greater than 111,000 MWh, confirming that the existing
structural and hydraulic systems can support large-scale hydropower development
without compromising irrigation requirements. Option III, although smaller in scale,
remains technically viable and highlights the potential for incremental hydropower
retrofitting. Financial analysis indicates that engineering design choices strongly
influence economic outcomes. Option II yields the highest NPV, followed by Option I,
while Option III generates only marginal returns. Cost-effectiveness analysis shows
that Options I and II achieve LCOE values between 0.013 and 0.017 USD/kWh, well
below the IRENA benchmark of 0.05 USD/kWh, whereas Option III, although feasible,
is less competitive. The study concludes that optimized hydropower retrofitting of the
Tendaho Dam offers a cost-effective and low-impact pathway for expanding renewable
energy generation
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Keywords
Hydropower Retrofitting, Economic Feasibility, Hydraulic Modelling, Net Present Value (NPV), Levelized Cost of Energy (LCOE)